The comparative balance sheets and an income statement for Finch Corporation follow: Balance Sheets Assets As of December 31 Year 2 Year 1 $ 62,452 30,355 $ 39,980 157,011 22,260 172,710 Cash Accounts receivable Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity 2,495 4,990 252,460 285, 710 $ 558,723 (141,170) 195,120 (234,110) 80,120 $ 371,660 $ 65,360 74,140 25,678 22,010 245,000 222,685 199,000 76,510 $ 558,723 $ 371,660 Income Statement Sales For the Year Ended December 31, Year 2 Cost of goods sold Gross profit Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income $1,503,000 (798,795) 704,205 (23,110) (21,790) (257,820) (255,310) $ 146,175 Other Information 1. Purchased land for $115,000. 2. Purchased new equipment for $101,700. 3. Sold old equipment that cost $134,950 with accumulated depreciation of $116,050 for $18,900 cash. 4. Issued common stock for $46,000. Required Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) FINCH CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Add: Decrease in current assets and Increases in current liabilities: Less: Increases in current assets and Decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: EA $ 0 0 Cash flows from financing activities: Ending cash balance 0 0 $ 0